WASHINGTON, DC - The United States Department of Agriculture imposed sanctions on three produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from the USDA.
Direct from the USDA Agricultural Marketing Service:
The following businesses and individuals are currently restricted from operating in the produce industry:
- AAA American Select Produce, operating out of Miami, Florida, for failing to pay a $9,975 award in favor of a Texas seller. As of the issuance date of the reparation order, Irka Diaz and Osmani O. Mursuli were listed as members and managers of the business
- Always Fresco, operating out of McAllen, Texas, for failing to pay a $40,885 award in favor of a Minnesota seller. As of the issuance date of the reparation order, Guadalupe Quintanilla, Jr., and Edgar Rios were listed as managers of the business
- West Pacific Orchard, operating out of San Antonio, Texas, for failing to pay a $59,800 award in favor of a California seller. As of the issuance date of the reparation order, Jose Luis Ruiz was listed as the manager of the business
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
For contact information, and to read the release in full, click here.
